Industrial and logistics leads the Philippine property market forward

by: Cheyenne Hollis is Editor-in-Chief at Dot Property Group and Thailand Property.

philippine property for sale
First Philippine Industrial Park is one of many innovative industrial properties in the Philippines

While the COVID-19 pandemic slowed many real estate sectors in the Philippines, demand for industrial and logistics space actually increased. Several experts believe the sector will remain a bright spot for the country’s property market in the coming months and possibly years.

This was one of the key takeaways from The Future of Logistics: Moving Beyond the Pandemic panel discussion organized by Santos Knight Frank.

“During the ECQ period, demand for industrial and logistics space rose for essential goods. In the following months, we expect demand to be more stable compared to the other real estate sectors. This demand is encouraged by the shift to e-commerce and the subsequent effects on demand for logistics, cold chain, warehouse, and other industrial services,” Kash Salvador, Santos Knight Frank Associate Director of Investment & Capital Markets, stated.

Health and wellness now, manufacturing in the future

According to William B. Chiongbian II, Group President & CEO of Fast Logistics Group, the Philippine logistics industry is in a prime position to support growing demand for health and wellness products.

“The quality of food will matter, and health and wellness will start to take a front seat in a developing country like the Philippines. With the right recipes from entrepreneurs, local government, and delivery enhanced by information technology, the industrial real estate infrastructure will be in the right place,” Chiongbian said.

Looking ahead, the Philippines could become a manufacturing destination in Asia as long as the industrial sector receives the proper support.

“With the right real estate infrastructure and support from the government, we’ve got to act together within the industrial sector that the Philippines is still one of the best manufacturing destinations. We need to work together to enhance what this country has to offer,” Chito Zaldarriaga, President of the Philippine Ecozone Association (Philea), explained during the discussion.

Industrial sector outlook remains positive overall

The industrial sector is expected to remain resilient moving forward. Howver it is important for those in the sector to rethink strategies in order to best take advantage of new opportunities that arose from the COVID-19 crisis.

“The industrial sector is all about the basics: basic space, food security, storage, and all the things you need in a crisis. This crisis is a realization that people are always going to need the industrial and logistics sector, and there is huge opportunity here,” Rick Santos, Chairman & CEO of Santos Knight Frank, noted.

Original article: https://www.dotproperty.com.ph/blog/industrial-logistics-leads-philippine-property-market-forward

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Philippine developers still focused on 2020 REIT launches

After years of waiting for favorable REIT rules and regulations to be approved, firms have no intention of letting COVID-19 derail share offering plans. DoubleDragon became the second Philippine developer to announce a REIT launch in 2020.

The Department of Finance, Securities and Exchange Commission, Bureau of Internal Revenue and Philippine Stock Exchange signed off on the new REIT rules at the start of the year. Developers had been lobbying for the rule changes for almost decade.

Ayala Land was the first developer to submit a REIT application in the Philippines, doing so in January. According to BusinessWorld, the Ayala Land REIT includes three commercial developments in Makati: Solaris One, Ayala North Exchange and McKinley Exchange.

Despite the COVID-19 pandemic causing a property market slowdown, Ayala Land Offices Head Carol T. Mills told the website that the firm is committed to launching its REIT in 2020.

DoubleDragon readies 2020 REIT launch

Developer DoubleDragon is preparing a PHP11 billion REIT launch that will take place during the fourth quarter. The company has decided to go ahead with plans to bring it to the market in 2020 despite economic uncertainty caused by COVID-19.

In an interview with BusinessWorld, DoubleDragon Chairman Edgar J. Sia II explained, “Although there is a global pandemic now going on, there are still investors looking to invest in specific companies that they think have a good, relevant and resilient portfolio. Right now, what matters the most is the long-term relevance and resilience of the business model more than anything else.”

Both DoubleDragon and Ayala Land will reinvest money generated from the REIT launches into their respective businesses. According to Santos Knight Frank, this reinvestment will contribute to the growth of the entire Philippine property sector and is the main benefit of the new REIT guidelines.

“We anticipate that REITs will drive an increase in acquisition, consolidation, and property development activities across the Philippines in the coming years. New capital raised by the developers through REITs will enable expansion of the real estate sector not only in Metro Manila but also in the provinces, and with it generate jobs across many sectors,” Kash Salvador, Associate Director for Investment & Capital Markets, Santos Knight Frank, noted.

lifted from this article: https://www.dotproperty.com.ph/blog/philippine-developers-still-focused-2020-reit-launches

all credits goes to Dot Property Philippines

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